The “Parliament Fund” refers to the Kapital earned from Revenues and are required by Parliament to function and govern Civil Society, hence its name. The Parliament Fund is where the rest of the Kapital in the Parliamentary Budget goes if it has not yet been transferred to the Proprietary and Fiduciary Funds described in the two preceding Entries. Taxation policies are oftentimes used to acquire the Kapital for the Parliament Fund. And compared to the other two Funds, the ones found in the Parliament Fund tend to be the largest items in the Parliamentary Budget. There are five variants: “General Fund,” “Special Service Fund,” “Debt Service Fund,” “Capital Project Fund,” and “Permanent Fund.”
The General Fund is the stockpile of Kapital not designated for any specified purpose. Most Kapital earned from taxation policies tend to be stored here. It is considered the largest of the five Parliament Funds.
The Special Service Fund is the stockpile of Kapital that has been designated by Parliament to be allocated toward a particular aim. Kapital earned from specific taxation policies, such as Excise Taxes or Petroleum Taxes for instance, are recorded in the Special Service Fund. If Parliament needs to provide a “Grant” to an economic organization “from the Public Sector” (Read: operating on Production for Utility), it will withdraw Kapital from the Special Service Fund.
The Debt Service Fund is for allocations of Kapital that Parliament will need to pay off its Quantity of Schuld. Parliament sets Kapital aside to facilitate long-term repayments of Schuld to investors and the Fractional-Reserve Banking System for sustaining any fiscal deficits in its Parliamentary Budget. The fact that there is no physical limit on how much Kapital can be allocated toward the repayment of Schuld has been picked up by proponents of Modern Monetary Theory (MMT) to justify their conception of Currency.
The Capital Project Fund contains Kapital intended for the conduct of “Capital Projects.” A “Capital Project” refers to the establishment of new economic activities and organizations that could potentially be used to create more Kapital. The Capital Project Fund is how the Parliament finds the Kapital to embark on public works, construction and infrastructure projects, and other large scale endeavors deemed beneficial to the long-term investments of the Market/Mixed Economy. This particular Parliament Fund has been the object of praise for Keynesians who believe that Parliament should play a dominant role in the Market/Mixed Economy.
The Permanent Fund is Kapital that can only be spent on designated functions and activities. The Kapital earned may be donated to Parliament by Civil Society on a voluntary basis. Additionally, any Kapital that was earned from the conduct of that aforementioned function or activity cannot be spent on anything else in the Parliamentary Budget. That also includes any investments allocated to it by Parliament.
We now know how Parliament finances and sustains itself as part of its official functions and activities. For the accountant, it is necessary to compile the financial data and provide the information to those who require them to make financial decisions. The auditor will periodically evaluate their handiwork to ensure the best-possible accuracy and reliability. This endeavor is known as “Financial Reporting.” The goal is to gather relevant financial data throughout Parliament, its government organizations and anyone contracted to work on their programs to create a “Financial Statement.”
Categories: Work-Standard Accounting Practices
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